Diamonds may be a girl's best investment -
even after the marriage is over
Always a girl's best friend, Diamonds join gold as a stable investment option once the divorce dust settles, as part of a solid financial plan for the future.
Diamonds last forever - sadly unlike so many marriages. The good news is, diamonds remain a girl's best friend through divorce also, as buying diamonds is not only an investment option as part of a long-term financial plan, but it feels good too! Diamonds are so much more exciting that plain old stocks and shares!
Diamond expert Monica Bortolin-Cossa explains in this interview with Alternative Divorce Guide Suzy Miller, how to judge which diamonds to buy when you want to create a secure investment for the future.
"In my previous article we scratched the surface of the matter; now we will go more into depth and we will talk about how to invest in diamonds and what to look for.
We already know that diamonds have been proven as a good investment in times when there is high inflation; they have been one of the most reliable investment products we know. To prove that, you should know that prices crashed only twice in the last 100 years.
The first time was during the Great Depression in 1929, which started with the Wall Street collapsing market. The second time happened much more recently, in 2008. Between 2008 and 2009 the market was put under extreme stress; however by 2010/2011 prices continued to increase to a staggering 35% or so. Lately, prices of diamonds as much as other tangible assets have been increasing significantly and they are expected to continue in this trajectory.
All the known established mines in the world are past peak production and, even if during the past 25 years there have been discovered more than 10,000 kimberlite deposits, only less than 1% of these have contained enough diamonds to make them economically viable to mine. All mines that are currently in production are kind of mature; most of them are at the final stages of peak production or beginning to diminish in supply.
Demanding is increasing while production is diminishing. It is said that by 2016 the supply/demand gap will be around 15%; by 2020 will be more than double at 36% and continue to be on the rise. Diamonds are valuable not just because they are beautiful but because they are also rare!
There are few things that you have to look for before investing in diamonds:
- the quality of the diamond (the well known 4Cs': color, clarity, cut and carat weight);
- the certification (an impartial judgment of the characteristics and quality of each diamond);
- Conflict-Free Diamonds (stones mined and produced under ethical human conditions. Profits from these diamonds are not used to fund conflicts and wars around the world).
Diamonds are to be considered a long term investment; you should consider to sell them only after a 5 year period - not before. To make a wise investment in diamonds your will have to purchase diamonds above 1.00 carat and possibly with the higher color and clarity grading, such as D to G (color) and IF to Vs2 (clarity).
I strongly suggest you spread your portfolio between colorless (white) and fancy color diamonds, even though these last ones require more capital. Just one out of 10,000 diamonds is a fancy color diamond: red is the most rare followed by blue and pink, while brown are at the very end of the spectrum.
Having a GIA certificate makes it so much easier to sell a diamond when you want to trade it. Without it, many dealers will hesitate to buy an unknown quality. Moreover, this kind of certification gives the purchasers added confidence that the diamond received is as described by the seller. GIA is the Gemmological Institute of America, the world's oldest, largest and most respected independent lab. It was established in 1931 and today is the world's most important and illustrious authority on gems.
I hope you now have a clearer idea on how to invest in diamonds. My very last advice is to always buy from a reliable source or from someone whom you trust.
Whatever investments you decide to make for the future, Financial planners can help you to create a solid wealth management portfolio."
Interview with Monica Bortolin-Cossa
Managing Director
MBC Diamonds Limited